Platinum is not only one of the world’s most precious metals, it is a transition metal that serves as a bridge between two sides of the periodic table. It plays a key role in chemical and catalytic reactions, and it’s highly conductive, durable and resistant to corrosion. Its role in powering a host of AI applications, however, has made it an essential metal of the new era of machines, automation, and alternative energy sources.
According to Discovery Alert, platinum is indispensable in advanced technologies due to its:
- High melting point
- Superior electrical conductivity
- Excellent thermal stability
- Remarkable magnetic recording capabilities1https://discoveryalert.com.au/news/how-ai-and-data-storage-propel-platinum-s-role-in-the-electrical-sector/
And demand for platinum is expected to rise as artificial intelligence, knowledge engineering, and robotics become further integrated into our everyday lives.
‘Data is the New Oil’
Artificial intelligence simulates the human thought process by collecting massive amounts of data and uses algorithms to sift through models, patterns, and samplings of human behavior.
And all of that data requires digital information to be retained, inventoried, and readily accessible. So, storing and preserving of high volumes of information is critical to the function of “thinking” computers systems.
“The amount of data storage needed for AI can vary significantly depending on the complexity and scale of the tasks being performed … for more advanced applications such as deep learning or natural language processing, vast amounts of data storage are necessary to store training datasets, model parameters, and intermediate results. In fact, some cutting-edge AI models can require hundreds of gigabytes or even terabytes of storage space to operate effectively.”2https://nfina.com/ai-storage/
Hard Disk Drives (HDDs) are high-capacity storage devices that read, write, and store this data. AI systems rely on them heavily. These drives store operating systems, browsers, software, processors, programs, files, documents, etc., and they cannot function without platinum.
“Platinum plays a vital role in the magnetic media alloy for modern hard disk drives (HDDs). Its inclusion in the ultra-thin magnetic storage layer of disks improves thermal and magnetic stability and, therefore, enables higher density data storage. Modern HDDs could not exist without platinum and it will continue in the same crucial role in upcoming, next-generation technologies.”3https://platinuminvestment.com/about/60-seconds-in-platinum/2018/09/26
Sensors and Stents
Pure platinum wires are also used in temperature sensors. Resistance temperature detectors (RTDs) are among the most popular and the most accurate, and they use platinum due to its unique physical and chemical properties:
- Melting point: approximately 1770°C or 3220°F
- High malleability
- High corrosion resistance
- Highly ductility
- Stable electric properties
- High wear and tarnish resistance
- Chemical stability 4https://www.thermofisher.com/blog/metals/could-platinum-group-metals-save-your-life/
According to the World Platinum Investment Council, the rare white metal is also used in ‘mission critical’ sensors like air bags, auto exhaust and carbon monoxide detectors, as well as biosensors like breathalyzers and blood glucose monitors.
Platinum saves lives in other ways as well. A highly biocompatible metal, it is used in critical medical applications and instrumentation.
“Platinum is inert, rarely causes allergic reactions, has good electrical conductivity, and can be fabricated into tiny components, all qualities that make it an ideal material for pacemakers, stents, implantable defibrillators, and catheters. Most pacemakers contain at least two platinum-iridium electrodes. Platinum marker bands and guide wires are commonly used to place stents, and now even the stents themselves may be made with platinum alloys. Platinum marker bands are also placed on catheters and guide wires to help surgeons with device placement. Platinum-iridium electrodes are used in neuromodulators such as aural and retinal implants as well as devices used to treat Parkinson’s disease and chronic pain.” 5https://www.birkmfg.com/blog/why-use-platinum-in-rtd-temperature-sensors/
Fuel Cells and Green Hydrogen
Platinum is also found in Proton Exchange Membrane (PEM), fuel cells that convert hydrogen into electricity. PEM fuel cells are at the center of the clean energy revolution. Their potential use in electric vehicles, renewable energy, and in a host of industrial applications could provide a cleaner, more scalable, and cost-effective form of power generation.
“Due to its unique chemical and physical properties, platinum is at the forefront of PEM applications – transformative technology that holds the key to unlocking the zero-emissions potential of hydrogen. PEM technology is used in both electrolyzers to produce hydrogen and in fuel cells, which power fuel cell electric vehicles (FCEVs).” 6https://www.cmegroup.com/articles/2022/platinum-the-critical-mineral-for-energy.html
Platinum is a key component of green hydrogen production. Green hydrogen is clean energy that only emits water as a byproduct. It can be a viable alternative to the harmful emissions of oil production and refinement, petrochemical refining, and ammonia production.7https://www.plugpower.com/blog/green-hydrogen-applications-eight-ways-forward-toward-sustainability/
In addition, the clean energy advantages of platinum-based technologies are viable for both consumers and businesses:
For Homeowners:
- Energy Efficiency: Fuel cells can provide a reliable and efficient source of electricity, reducing dependence on the grid.
- Environmental Impact: Utilizing green hydrogen and fuel cells helps lower carbon footprints and promotes sustainable living.
- Cost Savings: Over time, the use of efficient energy systems can lead to significant savings on energy bills.
For Businesses:
- Sustainable Operations: Incorporating platinum-based technologies in operations can enhance sustainability and reduce environmental impact.
- Corporate Responsibility: Adopting green technologies can improve a company’s reputation and appeal to Eco-conscious consumers.
- Innovation and Competitiveness: Staying ahead in the renewable energy sector can provide a competitive edge and open up new market opportunities. 8https://www.gardencityironandmetal.com/blog/platinum-the-unsung-hero-in-sustainable-energy-solutions/
Despite all of cutting edge these applications and innovations, platinum is still considered to be heavily undervalued as an investment metal. But its deepening supply crisis and mounting demand is triggering a significant price rally.The precious metal up over 48% year-to-date and a staggering 60% over the past five years with plenty of room to run.
Lest we forget that platinum is also an inflation hedge, a safe haven, and a store of value. It is a strategic portfolio asset that is 30 times rarer than gold. And in 2025 it is also at the forefront of technical innovation and the future of humankind.
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